Investment Compliance
Offering clients deep capabilities in investment compliance strategy, modelling, coding and testing to support successful platform transformations.
Investment Compliance introduction
Strata and BlueHill Compliance have formed a strategic partnership to offer clients transformational end to end OMS implementation services with investment compliance as a core offering.
Our practitioners are industry leaders in Investment Compliance, bringing key capabilities in:
- Investment Compliance Operating Model
- Compliance Data Model
- Rule Coding
- Rule Testing
- Health Checks and Audits
MIkko Ala-ilomaki
Head of INvestment Compliance Practice
Adding value to your business
Systems implementation
- Project Methodology and planning
- Provision of Rule Coding and Testing resources
- Compliance Asset – Hierarchy design and set-up based on source data
- Rule coding and formulation of Rule – Coding Standards
- Rule Testing and Quality Assurance
Systems and quality audits
- Conducting audits of investment compliance system rules against legal documentation
- Auditing regulatory rule coding functionality against the source Law
- Auditing pre and post-trade compliance violation management process, compliance violation history, operating model design and compliance breach resolution process
Business as usual / managed service
Provision of coding and monitoring resource to support business-as-usual investment compliance functions (including Rule Coding, Rule Testing, Pre-trade violation investigations and overnight violation investigations).
Operating model and process design
- Providing assistance to investment compliance operating model design
- Helping to define the roles and responsibilities of different departments in the investment compliance process
- Documenting Operating Model Design and Process map
How We Work
Investment Compliance
Our unique approach to investment compliance brings you the following benefits
- Provides complete transparency and understanding of the OMS Compliance Data Model
- Avoids long winded question loops between OMS provider and the client, simplifying the code creation
- Allows clients to go-live with a clean set of accurately functioning rules, cutting out unnecessary noise caused by bad coding
Quality improvement
Data Model Build/Macros
- Bottom up build of the Aladdin Compliance Data Model and macros, resulting in an accurate, structured compliance data model for the client.
Rule Coding
- Coding rules based on the agreed client data model and macros to increase the quality and accuracy of rule coding
- Coding rules based on similarity categorisation and agreed rule coding standards to achieve standardisation
Rule Testing
- Pre-agreed rule test scenarios and thorough documentation of rule test scenarios.
Efficiency and delivery model speed improvements
Data Model Built/Macros
- Pre agreed data model and macros resulting in a reduction of rule change requirements later on in the process
Rule Coding
- Standardisation of rule coding through agreed data model resulting in higher similarity between rules increasing coding speed
- Following agreed rule categories meaning that the same or similar rules are coded simultaneously to increase coding speed and efficiency
Rule Testing
- Data model/macro built and rule coding standards result in high degree of rule similarity, which consequently means large numbers of rules can be tested at once with limited numbers of test scenarios.
The Investment Compliance Health Check
The ROle of investment Compliance Functions
The Investment Compliance Function, which is also commonly referred to as Investment Guideline Monitoring, Portfolio Compliance or Mandate Monitoring, is arguably one of the most important Risk Management functions for an Asset Management firm.
Providing an Asset Management firm with the ability to monitor and control portfolio assets versus regulatory and legal restriction on a real-time basis against trading activity. Given the large size of AUMs of many asset managers and correspondingly high monetary value of individual trades, consequently the importance of investment compliance systems and functions in controlling breaches of regulations and legal requirements on a pre-trade basis is a fundamentally important risk mitigation activity of an asset manager.
can you answer the following confidently?
- Are your investment compliance rules coded accurately to prevent compliance breaches from occurring?
- Is your investment compliance function structured to operate efficiently to identiry and report on investment compliance breaches in a timely manner with the minimum amount of resources overhead?
- Have investment compliance rules been checked against robust compliance rule coding standards to ensure they consume the security master data accurately to produce correct results?
phase & process components to be health checked
Guideline Adoption
- Review of Guidelines and Feasibility prior to an IMA being signed with a client.
- Receipt of Guidelines from Client Services and/or Legal Department. Communication with Client Services, Legal Department and/or Portfolio management regarding guideline interpretation.
- Extraction of Rules from Legal Documents.
- Adding rules into the compliance rules database/system with mapping to the relevant client portfolio.
Rule Coding
- Coding compliance rules into the Investment Compliance system
- Managing Compliance Rules Database and Consolidation into unique rules
Rule testing
- Testing coded compliance rules
pre-trade monitoring
- Pre-Trade Violation management, overrides and communication with Portfolio Management team and override reasons into the monitoring system.
post-trade monitoring
- Investigating post-trade compliance violations and breaches utilising the compliance monitoring system and reporting breaches to portfolio management.
- Recording comments and explanations for compliance violations within the investment compliance monitoring system.
- Managing manual monitoring workflow, conducting manual monitoring checks and recording manual monitoring results.
Schedule a Consultation
Solutions to enable your business
Aladdin
- Enterprise / Risk Implementations
- M&A integration
- Accounting & Performance
- Op Model design + Optimisation
- Risk, Data & Interfaces
- Aladdin Data Cloud
- Aladdin Climate
- Aladdin Wealth
- Operational Alpha
eFront & Alternative Investments
Driving actionable insights for your business and your clients. Generating competitive advantage through our expertise in Data, Technology and Finance.
- Data & Investment Analytics
- ESG
- Client Reporting
- Regulatoary Reporting
- Compliance
- Performance
Data & Analytics
Bringing to market innovative, value add products and services.
Custom Insight Generation
Data integration, Modelling & Accelerators
POC and prototyping
- Bespoke tooling
Delivering firsts
“Strata have integrated seamlessly into many areas of Newton’s Aladdin implementation project, providing deep subject matter expertise on the system and valuable experience of the challenges and pitfalls learned through their prior implementations.”
“The Strata team are game changers when it comes to data and analytics and have consistently delivered complex and ground-breaking solutions for M&G in true partnership style. From data modelling through to data surfacing and visualisation, they have collaborated and added real value to our front office stakeholders, in turn moving the dial on how we model and report on ESG. Strata's formula of combining deep investments knowledge, internal and vendor data expertise and technical capabilities delivers high impact results, and I would highly recommend them to anyone looking to take their use of data to the next level.”
"Strata have extensive knowledge and expertise on both complex OTC products and the Aladdin system, which they have utilised to great effect. The impact of their strategic approach and dynamic team on the Swiss Re business means we are already seeing a significant return on investment.”
